FoundHer FundHers March: Felicia Flinders on Pensions, FIRE and Funding Your Future Self
- Lisa Maynard-Atem
- 3 days ago
- 12 min read
In this month’s FoundHer FundHers interview, I sit down with Felicia Flinders, Financial Educator and founder of Wealthways, who achieved financial independence at 48 after a 25-year career as an actuary. Our conversation goes deep into pensions, the gender pension gap, the power of tax relief, and why self-employed women cannot afford to treat retirement as an afterthought. If you have ever thought “I’ll sort my pension out later”, this is the wake-up call you didn’t know you needed.
Please note: A glossary of key terms and acronyms used in this interview is included at the end of this interview, for ease and clarity.
Many women still see pensions as something to “sort out later”. From your experience, what is the real cost of delay, particularly for women whose careers include breaks, pivots or periods of part-time work?
Simple - doing the maths - smaller pots than men! Based on the latest pensions report, women’s pension pots on average are shown in the table below. Some pension providers have also done research into how much pension pots are worth for different age groups. Fidelity surveyed 2,000 UK non-retired adults in May 2024 to find out their total pension wealth. Fidelity's figures reveal a similar, sizeable gender pension gap.
Men | Women | Average UK Adult | |
Average | £76,000 | £42,600 | £59,650 |
Aged 18-34 | £59,700 | £30,400 | £45,050 |
Aged 35-54 | £80,300 | £46,800 | £63,550 |
Aged 55`+ | £114,00 | £66,800 | £90,400 |
Why This Matters: If women aged 55+ have, on average, tens of thousands less in their pension pots than men, this is not a lifestyle gap. It is a long-term security gap.Delaying engagement with pensions does not freeze time. It compounds disadvantage. The earlier you act, the less you have to “catch up” later. |
Women live longer, on average, yet often retire with less. What structural and behavioural factors most commonly create this gap, and which of them can women realistically take control of today?
Statistically women do live longer - on average 83.6 years while men it is 79.9:
Current Life Expectancy
As of 2023-2025, life expectancy at birth in the UK is estimated at 79.9 years for men and 83.6 years for women, giving a combined average of 81.7 years (source)
Retirement pots and private pensions are indeed less as evidenced in the table above
Why – career choices / university choices and maybe going back to A level subjects. STEM occupations tend to pay more BUT because of societal pressures many girls believe they are not good at Maths/Science.
Enrolment in STEM Education: In the UK, 31% of core STEM students in higher education are women or non-binary individuals. Specific fields show varying representation:
Physical Sciences: 44% of students are female or non-binary.
Mathematical Sciences: 37% representation.
Computer Sciences: Only 23% of students are female or non-binary
Pensions are a function of salary and years worked – so if they can command a bigger salary, their pensions will be higher. Moving onto length of service – women tend to be the key child carers - so going part-time and consequently giving up climbing the career ladder. Perhaps not giving up -more work gives up on them - unless they are in high demand professions, where they can keep up with career progression. This was my experience working as an Actuary.
Control – start early – be intentional in subject choice and career choice. Get guidance and support from the community on which career works well. Two organisations are doing this – Stem_babe_ and Marsha Powell, CEO and founder of BelEve – linking mentors to young girls.
For women who feel intimidated by pensions, what is the single most important thing they need to understand first in order to move from avoidance to engagement?
Knowledge is key here – we only know what we know. If only more people knew about the benefits of the pension system. The very generous tax relief of 25% and 60% uplift on all contributions depending on one’s tax bracket. This is one of the reasons why I have set up Wealthways, to provide wealth and financial education around the three tools that I used to get wealthy – namely pensions, property and stockmarket investments. Learn to gain more knowledge and see the amazing benefits of pensions.
My heritage is Nigerian - where parents believe their children will be their pension! But here in the UK, the pension system is very generous and all we need to do is to engage and tap into it.
Examples – stay opted in to workplace pensions. Our future selves will thank us for that. Make use of employers matched contribution if it exist. Start early - day one of employment usually after the probation period. Indeed, with the junior SIPP (Self-Invested Personal Pension), the pension journey can start from birth. Parents, grandparents, aunties and uncles can pay up to £2,880 into a junior SIPP and the £720 tax relief is added. Free money, just like that. What’s not to like about that?
You achieved financial independence at 48 (the age I am now). Looking back, how did pensions feature in that journey, and what do you wish more women understood about their role beyond “just another savings pot”?
Yes, I was fortunate to have financial independence at that age as a mother of four living in London and retiring my late mother early. I was fortunate to land my first role post university as an Actuary – a profession that is very niche in the financial services. So, I was paid to be financially literate and understand the value of pensions from a very young age as every exam passed resulted in me being more valuable to my firm (consequently, I was rewarded with a pay rise). As my pay increased, my pension contribution increased in line. Starting early meant that the eighth wonder of the earth – Compound interest- could start to work in my favour.
Key takeaway – understanding how pensions work with the generous tax advantages namely contributions are not taxed on the way in; both growth and income and capital are tax free; at the end when pension payments are taken -25% of the pot is tax free. What’s not to be liked about that?
Why This Matters: Very few areas of life come with a government incentive this generous. If you are not using pension tax relief, you are effectively declining free uplift on your money. This is not about being “good with money”. It is about not leaving money on the table. |
Auto-enrolment has brought millions of women into pensions. Why is “being enrolled” not the same as being prepared, and what should women actively check in their workplace pension?
Most of my clients think the job is done just because they have been auto rolled into their workplace pensions. That is first step - opted in and remain opted in. BUT steps two and three are needed:
Check the investment funds that their contributions are invested in. All new employees are placed in the “default/balanced” fund which most probably will not reflect their risk appetite, capacity and timescales. These factors are teased out more in my pension workshops on HOW to maximise your pension pot AND stop leaving money on the table
Check for the expense’s ratios and overall returns over the previous 1-, 3-, and 5-year period.
How should employed women think about contribution levels in relation to salary growth, career pauses or caring responsibilities, rather than treating pension payments as fixed and unchangeable?
Easy – I’d take the concept of paying yourself first in the budgeting world. But here paying for your future self-first. As your salary increases – increase your pension contribution; add some of your bonuses towards pension contributions for that tax year. In the UK, you can contribute up to the lower of £60,000 or pensionable pay as defined by your employer.
What mistakes do you most often see women make with old workplace pensions when they change jobs, and what should they be doing instead?
Clients of mine tend to do either or both:
Ignore and forget about their old pension pots/plans
Transfer from a good scheme to a less favourable scheme because of hearing that it is good to consolidate – only if the necessary checks have been made
Instead keep records of their pensions – make use of my free net worth tracker on Stan store – track net worth monthly and AVOID the mistake I made that resulted in me working longer than I needed to.
Pensions are often deprioritised by self-employed women in favour of reinvesting in their businesses. When does that logic make sense, and when does it become a hidden risk?
100% mistake -a case of leaving money on the table. Let me expand. Paying into a pension plan is an amazing tax efficient way to provide for retirement income. Save on corporation tax as pension contributions are allowable expenses.
For women running businesses, how should pensions be viewed: as a personal responsibility, a business strategy, or both?
BOTH – because of the tax efficiency of it.
Running a business is hard work – no guarantee of its continued existence so strategically putting funds aside is a wise move -making full use of the tax benefits
Corporation tax is reduced and it funds your future self!
Why This Matters: If you are self-employed or running a limited company and reinvesting everything back into your business, ask yourself this:
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What pension options tend to work best for self-employed women and founders, and what key differences should they understand compared to workplace pensions?
SIPP -Self invested personal pension (see glossary below for full explanation)
SSAS – Small Self-administered scheme can tap into this type of pension to buy your commercial property for your business; plus, loan back into the business to fund the business; essentially the SSAS pension being one’s own bank. More on this in my workshops on pensions
Many business owners rely on the idea that they will “sell the business one day”. Why is this a fragile retirement plan on its own, and how should pensions sit alongside it?
80% of small businesses do not have a pension set up! They rely on their business to fund retirement, unfortunately many businesses fold and in my humble opinion pensions afford a safety net for business owners
If a self-employed woman feels she is starting late with pensions, what would a realistic and empowering first year of action look like?
Just start! It is never too late. Perhaps bigger contributions could be made to make up for loss years.
If a pension has been set up in the past, make use of the carry forward scheme - essentially back fill unused years. You can go back three years plus the current tax year.
You speak about designing life with intent. How can pensions be reframed as a tool for choice and freedom, rather than something only relevant at state pension age?
Awareness of other pensions not just state - SIPP can draw from that at age 55 rising to 57.
How do pensions fit into the wider FIRE philosophy, especially for women who want flexibility, optionality and peace of mind long before traditional retirement?
Coast FIRE concept – have enough in the fund that no longer need more contribution – time and compounding can do the rest
Barista FIRE – take on less stressful woes
Leave off other assets income – rental, ISA
What emotional or psychological shifts do you see in women once they begin to take pensions seriously, particularly those who previously felt “behind”?
On a path to financial peace; in control of their own finances; track net worth; be intentional on when work does truly become optional – NICE and breathe!
What is the triple lock is in relation to the State Pension, how does it work, and why does it matter, particularly for women who may end up relying on it more heavily in later life?"
The triple lock is the rule the government uses to decide how much the State Pension goes up each year. It increases by whichever is highest: inflation, average wage growth, or 2.5%.
So, if prices rise by 6%, wages rise by 4%, and the minimum is 2.5%, the State Pension goes up by 6%. It matters because it protects pensioners from falling behind the cost of living, and it’s especially important for women, who are more likely to rely on the State Pension in later life due to career breaks, part-time work, and lower lifetime earnings.
Why This Matters: The State Pension is a foundation. It is not a full financial plan. If you rely on it alone, you are limiting your future choices. Understanding how it rises each year is useful. Building beyond it is essential. |
If you could share three things you’d want every woman to understand about money, what would they be?
Money is a tool to live the life you want/design for yourself - be more open around the topic and have more conversations. The more we share, the better for our own wealthy journey. This is linked to having money systems in place; tracking expenses, assets and liabilities and automating things so little is left to win power. Tracking net worth is my starting point with all of my mentees.
Other types of wealth also matter - social, physical, time and mental - captured so well in the book by Sahil Bloom – 5 Types of Wealth. But money is the glue that brings it all together.
Money flows in and out of us – have an abundance mindset that there is enough for all of us. Wealthways wealth education exists to share the knowledge and skills for us all to be wealthy – because our wealth matters! We have the power to own and create our own wealth!
A massive thank you to Felicia Flinders, for agreeing to be interviewed for FoundHer FundHers, and becoming a part of the STYLISA FoundHers community. If you’re interested in finding out more about her work:
Connect with Felicia on LinkedIn
Discover Felicia on YouTube
Resources that may be useful:
Find pension contact details - GOV.UK
Check your State Pension forecast - GOV.UK
Ken Honda – Happy Money
T Harv Eker – The Secret of a Millionaire Mind
Free net worth tracker from my Stan store
FoundHer FundHers Glossary: March Edition
Because understanding the language is half the battle.
Abundance Mindset - The belief that wealth is buildable and not reserved for a select few. It does not mean ignoring risk. It means believing there is enough opportunity for you to create your own financial security.
Actuary - A financial professional who specialises in assessing risk and forecasting long-term financial outcomes, often within pensions, insurance and investment industries. Actuaries use mathematics, statistics and economic modelling to calculate how much money needs to be set aside today to meet future financial obligations. In simple terms, they are experts in long-term financial planning and risk.
Annual Pension Allowance - The maximum amount you can contribute to your pension each tax year while still receiving tax relief. For most people, this is £60,000 or 100% of your earnings, whichever is lower.
Assets - Things you own that have value or generate income. Examples include savings, investments and property.
Auto-Enrolment - The UK system that requires employers to automatically enrol eligible employees into a workplace pension scheme. It is the starting point, not the finished plan.
Barista FIRE - A variation of Financial Independence, Retire Early. It refers to reducing full-time work to something lower stress or part-time because your investments are already doing part of the heavy lifting.
Carry Forward Rule - A rule that allows you to use unused pension allowance from the previous three tax years, alongside the current year. Useful if you are catching up on pension contributions.
Coast FIRE - A stage of Financial Independence where you have built your investment pot to a level where, if you stopped contributing, time and compound growth would carry it to your retirement goal.
Compound Interest - Growth on growth. Your money earns returns, and those returns then earn returns. Starting early makes this significantly more powerful.
Corporation Tax - The tax paid by limited companies on their profits. Pension contributions made by a company can reduce corporation tax because they count as allowable business expenses.
Default Fund - The investment fund your workplace pension contributions are automatically placed into. It may not reflect your risk appetite, goals or timeline, so it is worth reviewing.
Expense Ratio - The annual cost of running an investment fund. Higher fees reduce long-term returns, often quietly and over time.
FIRE – Financial Independence, Retire Early: A movement focused on saving and investing with intention so that work becomes optional earlier in life. It is about choice, not necessarily stopping work entirely.
ISA – Individual Savings Account: A tax-efficient savings or investment account in the UK. Growth and withdrawals are tax-free. Unlike pensions, ISAs are generally accessible at any time.
Junior SIPP: A pension opened for a child. Family members can contribute up to £2,880 per year, and the government adds £720 in tax relief. It allows compound growth to begin early.
Liabilities: Debts or financial obligations you owe, such as loans, credit cards or mortgages.
National Insurance Years: Qualifying years of National Insurance contributions that count towards your State Pension. Typically, 35 qualifying years are needed for the full State Pension.
Net Worth: The total value of what you own (assets) minus what you owe (liabilities). Tracking this regularly provides clarity and direction.
Pension Pot: The total value of your pension contributions plus investment growth. This amount fluctuates over time.
Pensionable Pay: The portion of your salary that your employer uses to calculate pension contributions. It is not always your full salary.
Risk Appetite: Your comfort level with investment ups and downs. Higher potential returns usually come with greater volatility.
Rental Income: Income generated from property you own and rent out. Often used as an additional income stream in financial independence strategies.
SIPP – Self-Invested Personal Pension: A personal pension that gives you control over how your money is invested. Commonly used by self-employed individuals and business owners.
SSAS – Small Self-Administered Scheme: A company pension scheme often used by business owners. It can be used strategically, for example to purchase commercial property or loan funds back to the business, within strict rules.
State Pension: The pension paid by the UK government once you reach State Pension age and have enough qualifying National Insurance years. It is a foundation, not a full retirement plan.
STEM: An acronym for Science, Technology, Engineering and Mathematics. STEM subjects and careers often attract higher average salaries, which can lead to higher pension contributions over time. Because pensions are closely linked to earnings and years worked, representation in STEM fields can have a long-term impact on women’s financial outcomes.
Tax Relief: Money added by the government to your pension contributions. For basic rate taxpayers, every £80 contributed becomes £100 inside your pension. Higher rate taxpayers may receive additional relief.
Triple Lock: The rule used to determine how much the UK State Pension increases each year. It rises by whichever is highest: inflation, average wage growth or 2.5%.
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